Seller delaying exchange till April - offering us to rent in the interim

Yorkie1

ihatemyhouse wrote: »

I thought you had to live in a property for 2/3 years to not have to pay CGT

No, again you are incorrect.

If a property is your principal private residence then there is no CGT liability if you sell it within 3 years of it ceasing to be your principal private residence.

pjread

sj239 wrote: »

Thanks for all your responses. Good to know I can get some decent advice from someone out there!

They are asking for a rent of £1000 a month which they claim is fair given the market rent would be ~£1400. Obviously I've gone back with the argument that i should just be paying a nominal or token rent since its all been their fault and quite frankly I should be compensated in some way for their negligence in missing this glaring fact. Net net they are not going to sell before April, my mortgage offer runs out mid April so it will be tight but doable to exchange and complete then. Their alternative is to rent it out short term until April to someone else and then put it back on the market. They think prices have gone up substantially, which is probably fair, but with me they have a fully ready and waiting offer ready to exchange plus some nominal rent until then so hopefully that will be enough for them. Regarding the £10k security or 'bond' - not sure how that contract will be drawn up so will let you know when I hear from seller's solicitor.

Mortgage offer might run to mid-april, but I'm wondering if the mortgage co will want another valuation given the time span if things drop over the next few months...

DevilsAdvocate1

I think I'd be calling their bluff and saying that I am not prepared to do this. At the end of the day I would be expecting to be paying down my mortgage, not wasting money on rent that I'll never see again.

Let them find a tenant willing to stay there till April and pay £1400 a month. Think they'll find this difficult. They should be paying you for the inconvenience, not expecting £3000 in rent money from you before you exchange.

And what stunt might they pull come April? Have you spoken to your solicitor about this?

alwaystryyourbest

They are having a laugh, find yourself another buyer who wants to buy your house now,not in April next year..

dancingfairy

Well if they want to be landlords they'd better acquaint themselves with all the rules and regulations.
They'd obviously have to do a gas safety check if there is gas.
They'd have to protect your deposit if you paid one. If not you can sue them for non-protection.
They'd need Consent to Let or Buy To Let.
And a host of other things.
Given that they don't appear to be the smartest people in the world or being advised very well it could be interesting to say the least.
It probably wouldn't go against you, but could give them some interesting unforseen consequences
df

ValHaller

ihatemyhouse wrote: »

I thought you had to live in a property for 2/3 years to not have to pay CGT

The real issue, it seems to me. is that the vendors which to maximize their use of the annual capital gain allowance free of CGT